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Tesla: UBS resumes coverage with 'sell' rating

(CercleFinance.com) - UBS has resumed its coverage of the Tesla share on Thursday, with a "sell" rating and a new target price of 410 dollars, compared to 160 dollars previously.

In a note to clients, the broker said it is taking a "more bullish" fundamental view of the Californian electric carmaker's technology, as well as its lead in hardware and software.

While UBS believes this justifies a market cap that is well above most of its rivals - which is currently the case - the shares have "already left the orbit," it added in the research note.

Tesla shares now discount 1.6 million vehicles sold in 2025, from 367,500 units in 2019, prompting UBS to say that the shares are "over-shooting right now."

This finding leads the broker to warn investors: "any issues are likely to have a substantially negative impact on sentiment and share price," it said.

These comments, however, seemed to provide feedstock for bulls, as the share was up a further 0.5% at 574.5 dollars on Thursday, giving the company a market cap of 103.5 billion dollars.

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